South Korean Kospi Falls 10% Amid Broad Tech Sell-off
The Kospi index dropped 10% on Tuesday, triggering a circuit-breaker pause, as tech and semiconductor stocks fell worldwide amid renewed market volatility.
South Korean markets slumped on Tuesday, with the Kospi index losing 10% and activating a 20-minute circuit-breaker pause. Leading memory-chip makers SK Hynix and Samsung each fell more than 12%, pulling down the broader market that is heavily weighted toward the two firms.
The decline followed a modest sell-off in U.S. technology shares, where the Nasdaq slipped 1.3% and the S&P 500 fell 0.8% on Tuesday. Analysts noted that recent price drops in Google and SpaceX, as well as comments from the Federal Reserve’s new chair about future rate hikes, may have heightened investor caution.
Semiconductor stocks also retreated, with Micron Technology down 8% and Marvell Technology down 7%. Nvidia fell about 3%, adding pressure to the sector. The broader Asian market echoed the downturn, with Japan’s Nikkei down 3.6% and SoftBank losing 15%.
While the Nasdaq remains near its recent highs, the episode highlights the sensitivity of markets to shifts in sentiment surrounding artificial-intelligence valuations and monetary-policy expectations.